I would think IBM would want to purchase Cray for their technology instead of being beat by Cray's technology regularly. $1 billion would be peanuts for IBM to spend on Cray acquisition and Cray would fetch nearly $30 unless another bidder entered the scene. With $250 million in cash on the books, acquiring Cray at $30 would be cheap. In the meantime, a nice $2.50 special dividend or 17% would be nice before year end.
IBM has had plenty of opportunities to buy CRAY in the past. There might be anti-trust issues. I'm not sure. The government might also want to keep two suppliers. That is a natural reason not to approve any deal. I think a deal is unlikely. I'd also prefer CRAY to motor along by itself. Ungaro has been doing a good job. Let him continue. Of course, if someone wants to pay me $30 today, I won't complain; but a lot would have to go right for CRAY to support that sort of price. It might eventually get there but it will take (say) a couple of years.
It's good to see the stock paying almost no attention to market weakness. It's in regular new 52-week high mode. Not a bad deal.